Trepp CRE March Report Shows Spike in Delinquent Loans

The 30-day delinquency rate on securitized multifamily mortgages spiked 330 basis points to 13.2% in March from February with the default of the Stuyvesant Town and Peter Cooper Village project in Manhattan. Without the $3 billion in Stuyvesant Town CMBS moving into the "foreclosure" category, the delinquency rate would have jumped 62 bps to 10.5%, according a Trepp LLC report. The New York firm tracks the performance of commercial mortgage-backed securities. Trepp reported the 30-day delinquency rate on all CMBS hit 7.6% in March, up from 6.7% in February. "Weakening commercial real estate and construction loans continue to drive bank failures," the Trepp analysts said in a separate report. They estimate that 200 banks with $170 billion in assets will fail in 2010, up from 140 banks last year with the same amount of assets. "The highest concentration of at-risk banks are in the boom/bust markets of Florida, Georgia and California and the rust belt markets of Illinois, Wisconsin, Minnesota and Michigan," the Trepp report says.